Average weekly fostering allowances per child include: •Standard fostering placements £360 per week •Complex fostering placements £420 per week •Specialist fostering placements £600 per week When you foster with us, you’ll be classed as self-employed. This means you’ll be entitled to tax relief on your fostering income and you’ll pay very little, or no, tax and national insurance. The tax relief you’ll receive depends on your financial circumstances and you’ll still need to complete a tax return. Tax exemption and relief There is a fixed tax exemption of £10,000 per year. This means you don’t have to pay tax on the first £10,000 you earn through fostering. You may also be able to receive tax breaks on earnings over £10,000. To find out more and for help with completing your tax returns, please speak to our dedicated tax advisors on 0844 800 3880. Benefits and tax credits When you foster with us, you’ll be pleased to learn that you won’t lose any existing benefits. You’ll still be able to claim Child Tax Credit for your own children. You’ll also still be eligible for National Insurance Credits, which count towards your basic state pension. Depending on your circumstances, you may also be eligible for Working Tax Credit. NOTICE THE DIFFERENCE IN THE AMMOUNT THE AUTHORITY PAYS COMPARED TO PRIVATE FOSTERING AGENCIES. Fostering Allowances Private (Independent) Agencies On average, Private Fostering Agencies pay a basic weekly fostering allowance and fee of £390 per week for all ages of children. Some Agencies also pay foster carer enhanced payments of up to double their standard rate, dependent on the needs of the child, such as : Parent and child placements; Children with special needs; Remand placements. The weekly allowance for each child fostered is intended to cover living costs such as food, clothes, basic travel and household bills. There is also a reward element for the foster carer in recognition of the demands of the fostering task. Local Authority Fostering Services The Fostering Network recommended an increase of 2.3 per cent based on the most recent forecast rate of inflation for 2014 as measured by the Consumer Price Index (CPI). The minimum allowances for 2014-15: Outside London Age 0-4 £140.33 (£137.18) Age 5-10 £159.85 (£156.26) Age 11-15 £199.00 (£194.53) Age 16+ £242.08 (£236.64) Inside London Age 0-4 £164.71 (£161.01) Age 5-10 £187.77 (£183.55) Age 11-15 £233.83 (£228.57) Age 16+ £283.95 (£277.57) £500 per child christmas allowance , £200 birthday allowance and £500 holiday allowance, plus entitled to get clothing allowances too
Posted on: Sun, 04 Jan 2015 17:47:56 +0000
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